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The Dutch banking and insurance giant is withdrawing its operations from the Greek market. ING’s headquarters and the European Commission have prepared a plan for its restructuring and reformation into a “smaller and more effective bank.” With a 13% share of the Greek insurance market, ING is the second biggest insurance company in the country with 450 employees and 210 000 clients. The news surprised unpleasantly the insurance sector in Greece, still recovering after five insurance companies were closed down in September.

In accordance with the reformation agreement with the European Commission ING is planning to spin off its insurance and asset management operations. The company is issuing rights for €7.5b to pay off half of the €10b it received as a state aid from the Dutch government last year.

At first, ING announced the selling off of IPO’s (Initial Public Offerings) assets as well, on it has agreed upon with the E.C. In Greece the company is on the watch for a strategic investor for its insurance operations, or a part of them. If investors can’t be found the company will proceed with putting its assets up to auction, and there is a possibility that the two procedures take place simultaneously.  

ING’s Greek subsidiary is part of the company’s regional market, including Bulgaria, Romania, Hungary, Slovakia, Czech Republic, Poland and Spain. In Greece, the company is operating in collaboration with the insurance companies Interamerican and Ευρωπαική Πίστη in the sector of health and general insurance and with Piraeus Bank in the individual and group insurance sector. Analysts assure that the separation of the insurance operations will not affect its clients since the conditions will not change for the existing policies. The spin off deadline is 2013.

It’s interesting to note that expected profits from the company’s Greek subsidiary for this year are €750m, significantly higher than last year- €568m. Currently, movie theaters all over Greece are airing a commercial of the Dutch giant with the slogan “ING has a solution for everything.”